Japan Elevator Service (6544) Q4 2025 earnings summary

Executive summary

• Net sales rose 17.0% YoY to ¥49.4B, with operating profit up 26.4% to ¥8.62B and net profit up 22.5% to ¥5.53B, both exceeding forecasts due to strong maintenance, repair, and modernization demand.

• Maintenance and repair services net sales increased 15.1% YoY, while modernization services grew 21.5% YoY.

• Operating profit margin improved to 17.5% (up 1.3 pts YoY) due to productivity gains, increased contracts, and SG&A control.

• Business environment remained favorable, with robust growth in maintenance contracts and successful M&A integration.

• Comprehensive income reached ¥5.76B, up 25.9% YoY.

Financial highlights

• Gross profit increased to ¥18.76B from ¥15.95B YoY.

• Cash and cash equivalents at year-end were ¥2.06B, up ¥187M from the previous year.

• Net assets at ¥35.4B and total assets at ¥78.1B as of Mar 2025; equity ratio 56.4%.

• Dividend per share increased to ¥31, with a payout ratio of 49.9%.

• Ordinary profit reached ¥8.62B (up 25.8% YoY); depreciation and amortization totaled ¥1.56B and ¥276M, respectively.

Outlook and guidance

• FY Mar 2026 forecast: net sales ¥55.0B (+11.4% YoY), operating profit ¥10.0B (margin 18.2%), net profit ¥6.0B (+8.5% YoY).

• Earnings per share forecasted at ¥67.37 for the next fiscal year.

• Continued growth expected in maintenance contracts and modernization shipments; OP margin targeted above 18%.

• Medium-term plan (VISION2027) targets net sales over ¥60B and operating margin of 20% by FY Mar 2027.